Higher exploration and production (E&P) expenditure, financial durability of the companies and customers are likely to drive oilfields services market in the Middle East to record revenues worth $13.4 billion by 2019, a report said.

Meanwhile, the surge in active rigs in the Middle East, backed by shift in focus towards onshore drilling will fuel the regional drilling to record revenues worth $88.2 billion by 2019, added the latest publication entitled “Middle East Oilfields and Drilling Services Market Outlook to 2019 – Future Growth led by Deepwater Drilling and Quest for Increased Production” from Ken Research, a leading global industry research and information service company.

The oilfield services are used at every stage of the life cycle for development of oil field including exploration, production, drilling, well intervention and development, completion, waste management and other development stages of the life cycle of an oilfield.

Middle East OFS industry valued to around $9.7 billion in the year 2014, driven by the increased enhanced oil recovery (EOR) and increased number of mature fields. The presence of huge reserves in the region out of which many are yet to be explored and exploited presents an extensive market to the OFS companies in Middle East as compared to any other geographical locations across the globe, the report said.

The drilling services industry of Middle East demonstrated strong fundamentals, a well-built growth and increased activity as compared to any other region across the globe during the past few years 2009-2014.

The demand for drilling services is budding up with growing drilling activities in onshore as well as in offshore oil fields. Some of the drilling services like directional drilling, land drilling, offshore drilling, well service and work over are becoming essence, with the amplified development of oil & gas exploration and production activities, according to the report.

The cost of operating drilling rigs is an important factor to bear in mind when considering which oil regions are suffering the most in the current low oil price environment. The drilling services market in Middle East is likely to face marginal slowdown in terms of revenue growth, owing to subdued crude oil prices. However, in the long run the prices of crude oil will become stable along with the prospects of surge in drilling demand, said Ken Research in the report.

Players operating into the drilling and oilfield services have to enhance their E&P expenditure, said the research analyst at KenResearch.com.

“Moreover, as per the scenario, most of the wells in Middle East are drilled onshore. However, as the companies are projected to venture into the offshore markets, the offshore applications of these techniques is likely to witness an increase especially in the regions such as UAE, Saudi Arabia and Oman where the onshore drilling market share is anticipated to deteriorate,” the analyst said. – TradeArabia News Service